Approval is recommended.

In June 2016 as part of the approval of the adopted budget, a special reserve was established to fund the expected increase to the health benefit cap which would keep full time employees from experiencing additional out of pocket costs for their health and dental benefits.

At the November 8, 2016 Board meeting, the Board took action approving the AB1200 Public Disclosure Form which showed the affordability of the increase. As a result salary schedules have been updated to reflect the new fringe benefit rate.  The new rates took effect October 1, 2016.

Approval of the attached 2016/17 salary schedules is recommended.

Submitted by:

Ginny Pheatt

Asst. to the Business Manager

The proposal to develop a facilities master plan for Miller Creek will help move the district forward in assessing the District’s need through a review of existing master plans, site inspections, best practices and meeting with District staff. This details more of the physical lay-out of the campus and special considerations due to the older portables, the old track and other science and garden elements, etc. It will provide ideas for improving the campus.

No general funds will be used as it is appropriate for capital developer fees.

Submitted for consideration and approval by:

Ginny Pheatt

Asst. to the Business Manager

The Pop Choir is an auditioned vocal group from Miller Creek that was established in Spring 2016. There are 6th, 7th, and 8th grade choir students in the ensemble, which meets after school once a week.

Projects completed:  Initial work started in June 2015 with completed projects including a new turf play area at Vallecito School; roofing projects at Mary Silveira School, Vallecito School and Miller Creek Middle School and the new Lohwasser Field at Miller Creek Middle School. The second phase of work started in June 2016 with completed projects including improvements of the Dixie School multi-purpose room, Vallecito School parking lot and Vallecito School courtyard.

Current projects:  In June work also started on the Mary Silveira School multi-purpose room expansion and upgrade.  This project is expected to be finished by the end of December 2016. The Technology Infrastructure upgrade project is currently underway and Dixie School’s modernization is in design with a target for the work to be done this summer.  This project will include improvements to all classrooms including interior finishes and technology.

Future projects under consideration include:

• Miller Creek science labs and mechanical upgrades
• Safety (all four schools)
• Classroom upgrades and modernization (all four schools)
• Fire alarm system upgrades (all four schools)

Citizens Oversight Committee: At the March 10, 2015 Board of Trustees Meeting, the board approved the formation of the Measure C Citizens Oversight Committee (COC).  The COC’s charge is to inform the public concerning expenditures of the bond and ensuring that proper expenditures of the bond’s proceeds.  The last COC meeting was held on September 20, 2016.  The next meeting is scheduled for February 28, 2017 where the committee will review the Bond Performance Audit. 

Budget:  In April 2015 the District received the first issuance of the bond proceeds totaling $14.9 million. As of September 19, 2016 we have expended over $4.7 million.  This includes any invoices paid to date but not necessarily for all work completed.  

An update on Measure C projects will be presented at this meeting by Adam Coll, Construction Manager with Greystone West or by district staff.

This report is presented as information only.  No action is required.

Attached is the preliminary Budget/Local Control Accountability Plan (LCAP) calendar for the 2017/18 fiscal year and a separate LCAP timeline. The proposed calendar indicates the major phases of budget development and LCAP development, the individual responsible for each function required, and is subject to revisions throughout the year. This proposed calendar meets the legal requirements for publication of dates and public inspection of the budget and LCAP.  Furthermore, it provides the dates of the public hearing on June 6, 2017 and budget adoption on June 27, 2017 that is prior to July 1^st.

With the Board of Trustee’s approval of the calendar, the Business Office and Educational Services will move forward to use these timelines for budget development planning and LCAP review. The dates reflected in this calendar offer an opportunity for review and analysis as well as for comments and suggestions by the Governing Board, Administration, Bargaining Teams and the community.   

The Business Manager and Assistant Superintendent of Educational Services will review the Budget/LCAP timeline with the Board of Trustees.

State Budget:

The Governor’s January Budget Proposal is scheduled for release on January 13, 2017.  Information on the 2017-18 state budget as well as updated information for 2016-17 will be disclosed.   Based on current information from the Department of Finance, the state’s revenue numbers are slightly below the Governor’s revenue projections that he used to build his current budget.  In the last two years state revenue numbers were ahead of projections at this time which resulted in the Governor providing additional resources to education as one-time dollars. Given the current state revenue trend it is unlikely that one-time dollars will be provided to schools as part of the 2017-18 state budget.

Dixie School District Budget and Financial Challenges:

The state budget for both 2015-16 and 2016-17 both provided an increase in state funding through the Local Control Funding Formula (LCFF) and with additional revenues for school districts from one-time discretionary funds. This allowed the Dixie School District to close the books for 2015-16 with a surplus in the general fund for first time in five years.  However, the 2016-17 budget again reflects a level of deficit spending. It is important to note that a portion of the deficit is planned. The District will continue to monitor the level of deficit spending and look for ways to reduce current and future costs.

State revenue for 2016-17 and projections for future years are based on the LCFF calculation.  Based on the current year calculation the District is at 96% of full funding of the LCFF target.  One concern is that as we move closer to full funding the GAP (difference between target and current funding) becomes smaller and will result in lower level of new revenues over the next few years. (See attached Change in LCFF Funding document that illustrates this). The level of new funding may not sufficiently cover built-in costs to the budget such as step and column and STRS/PERS increases. In addition, once the District is fully funded at the target level, new revenues will be driven strictly by state COLA and any growth or decline in Average Daily Attendance (ADA).

ADA is one of the other key components in determining current and future revenues projections. The 1^st interim report and multi-year projections are based on the 2015-16 Demographic/Enrollment study.  The 1^st Interim report reflects similar assumptions as those used in the Adopted Budget. The 2016-17 study is currently being finalized and is scheduled to be presented at the January board meeting.  The District will adjust future revenue projections based on the new enrollment projections. Please note that that any decreases in future enrollment will impact and lower projected LCFF revenues.

The District has settled negotiations with the CSEA for the year and these costs are reflected in the budget.  Negotiations with the Dixie Teachers Association for this year are continuing and any costs associated with a settlement are not included in the budget.  

1^st Interim Report 2016-17 Fiscal Year:

Attached is the First Interim Report for the current fiscal year.  Districts are required by Education Code Section 42130 to submit an interim report, which covers their financial and budgetary status as of October 31^st to the Governing Board of the District. 

The District has used FCMAT’s LCFF calculator for our multi-year revenue projections. Major factors in the calculation include Average Daily Attendance (ADA), COLA and GAP funding levels. 

Our Multi-Year Projection (MYP) indicates that we will remain fiscally solvent under AB1200 guidelines. 

• District Certification of Interim Report – states whether or not the District is able to meet its financial obligations in the current and two subsequent years and must be signed by the Governing Board President.Our financial statements indicate we will have a positive certification.
  
• Revenues, Expenditures and Changes in Fund Balance – this is a summary of the General Fund Budget, including reports for unrestricted, restricted and combined General Fund.This form compares the Original Adopted Budget, the Board Approved Operating Budget and the Projected Year Budget along with detailing the current expenditures as of October 31, 2016. Similar forms for each district fund are also included.
  
• Average Daily Attendance (ADA) Report – shows a comparison of our estimated ADA from Budget Adoption to current estimates.When comparing ADA estimates from Budget Adoption to current estimates, the Estimated P-2 ADA for District Regular ADA decreased by -2.0. However the District is able to use the higher of current year or prior year ADA for the Funded ADA. District ADA County Programs is based on last year’s ADA and will be updated after the Marin County Office of Education (MCOE) posts their P-1 attendance. Please note that ADA projections for Budget adoption were based on enrollment projections and we have now updated the ADA estimate based on current enrollment numbers.
  
• Cash Flow Worksheet – reflects actual cash transactions through the month of November and estimates for the remaining months of the fiscal year. The Cash Flow worksheet indicates that the District will maintain a positive cash balance at the end of the fiscal year.
  
• Multiyear Projections – This form shows the unrestricted and restricted resources followed by a summary report for current year and the subsequent two fiscal years. Similar forms for each district fund are also included.
• Criteria and Standards Summary Review – verifies the financial condition of the District by analyzing areas of the budget and comparing them to historical and standard criteria.Explanations must be provided for areas that deviate from the standards.
  

  A separate attachment includes the General Fund budget assumptions for current year and the two subsequent years. Key budget assumptions include:  

• Revenues:

LCFF Sources: FCMAT’s LCFF calculator used for state revenue assumptions

• Target COLA: 0.0% 2016-17, 1.11% 2017-18 and 2.42% 2018-19
• GAP funding based on DOF estimates of 54.84% 2016-17, 72.99% in 2017-18 and 40.36% in 2018-19
• ADA: no change in 2017-18 and+22.5 in 2018-19
  • ADA projections were based on the 2015-16 Demographic/Enrollment study.The current study and new projections are scheduled to be presented at the January board meeting.Please note that that any decreases in future enrollment will impact and lower projected LCFF revenues.

Other revenues:

• Food service related state, federal and local revenues and expenditures were moved from General fund to the Cafeteria fund #13
• Mandate Block Grant:$28/ADA
• State Lottery budgeted at $185/ADA ($140 Unrestricted and $45 Restricted)
• Parcel tax budgeted at $352 per parcel
• One Time Discretionary funds budgeted at $214/ADA for 2016-17 only
• Transfer from Fund 40:$998,449 ($873,449 + additional $125,000 to help fund past salary increases) in 2016-17, 2017-18.The additional transfer will decrease by $50,000 in 2018-19.

Expenditures:

• Step & Column increases for all contracted employees in 2017-18 and 2018-19
• Current staffing levels assumed for 2017-18 and 2018-19
• STRS increase budgeted at +14.43% in 2017-18 and then increasing to +16.28% in 2018-19.It is estimated that STRS costs will increase annually by $200,000 through 2020-21
• Instructional Materials for state adoptions $50,000 in 2017-18 and $250,000 in 2018-19
• CPI Index applied to current year adopted budget for 4000 and 5000 object codes
• Special Ed ADA transfer to MCOE budgeted at $186,069
  • This number will be revised based on P-1 county special education ADA
• Transfer Out:
  • Transfer to Debt Services (CREB Solar Bond payment): $144,645
  • Estimated electricity savings from Solar panels
  • Special Ed Excess Cost: $434,314
  • Special Ed ADA transfer to MCOE budgeted at $186,069
  • Transfer to Cafeteria Fund: $24,813
• This is new in 2016-17.Previously accounted for as part of general fund encroachment

Ms. Glickman and Ms. Taekman will report to the Board and Administration on the Ad-Hoc Communications Committee.

Election of Governing Board President 

Election of Governing Board Vice-President 

Election of District Clerk 

Election of Marin County School Boards Association Member 

Reorganization of Board Represented Committees 

Approval of School Board Meeting Dates for 2017

In order to help with planning for the 2016/17 school year and ensure that certain dates are reserved, the Board approved a "draft" set of Board meeting dates for 2017 at the September 13, 2016 meeting.

Board meetings are open to the public and are normally scheduled at 7:00 pm on the second Tuesday of the month, (exceptions are January, when the meeting will take place on the 3rd Tuesday of the month; April, when the meeting will take place on the 4th Tuesday due to spring break; two meetings will be held in June on the 1st and 4th Tuesday; and August on the 2nd and 4th Tuesday of the month; and in December the meeting will take place on the 1st Tuesday of the month. Meetings are normally held at the District Office at 380 Nova Albion Way, unless noted.

January 17, 2017 – MES

February 14, 2017 – VAL

March 14, 2017 – MC

April 25, 2017 - DX

May 9, 2017

June 6, 2017

June 27, 2017

July 11, 2017

August 8, 2017

August 22, 2017

September 12, 2017

October 10, 2017

November 14, 2017

December 5, 2017